Mobile phone operator companies are set to see their corporate tax rate reduced from 45 per cent to 40 per cent if they float at least 10 per cent of shares through the stock exchanges, according to an upcoming budget proposal.
Under the plan, the reduced rate will apply when a telecom operator becomes publicly traded by transferring at least 10 per cent of its paid-up capital through the stock market. Pre-initial public offering (IPO) placement will be capped at 5 per cent under the condition.
Officials said companies floating at least 20 per cent of paid-up capital through an IPO will also qualify for a 10 per cent corporate tax waiver in the year of listing.
The incentive is designed to encourage telecom operators to increase public shareholding, improve transparency, and strengthen corporate governance while also expanding the supply of shares in the capital market.
National Board of Revenue officials indicated the incentive is expected to apply to unlisted operators, as the two largest players—Grameenphone and Robi—are already listed with around 10 per cent public shareholding. Banglalink and state-owned Teletalk remain unlisted, with both still reporting losses.
Policymakers said the measure is part of a broader effort to align tax policy with capital market development and deepen formal financial sector participation.
